Emerald Triangle Banks Ordered to Spy on Customers

from the Press Democrat:

Federal regulators are instructing North Coast banks to scrutinize their customers’ financial transactions for signs of money laundering and drug deals, the result of the region’s reputation for marijuana production.

Evidence of the policy emerged last month, when the largest bank in Mendocino County [Savings Bank of Mendocino County] notified shareholders that federal banking regulators were requiring it to closely watch its accounts because the North Coast had been designated a high-risk area for money laundering.